This new Layer-1 blockchain intends to serve as the bridge between decentralized finance (DeFi) and real-world assets (RWAs). Converge will be going live on the mainnet in the second quarter of this year. It aims to do this by fulfilling the ever-increasing demand for tokenized RWA in a decentralized space. The blockchain will maximize transaction speed and user experience without sacrificing complete compatibility with the Ethereum Virtual Machine (EVM). As gas tokens for transactions on Converge, Ethena intends to leverage its stablecoins, USDe and USDtb.
Converge strives to be the connective tissue that integrates traditional finance with DeFi. It provides an ultra-high-throughput, secure, privately-permissioned and public interoperability blockchain purpose-built for institutional and decentralized finance users. A developer-focused testnet for Converge will be launching in the coming weeks.
Key Features of Converge
Workshop participants will help shape how Converge will function with a Converge Validator Network (CVN) that holds discretionary powers. The CVN enables Converge to move quickly against threats that may jeopardize customer resources. It serves to protect the integrity of the network itself. Validator nodes will stake Ethena’s native governance token, ENA, to maximize network stability and incentivize active participation.
The blockchain is designed to handle the on-chain deployment of products like BlackRock’s forthcoming BUIDL money market fund. This functionality is intended to further smooth the on and off boarding of traditional financial products into the DeFi ecosystem.
On the regulatory side, Converge announced a partnership with real-world asset (RWA) platform Securitize to help bring tokenized traditional finance instruments to market. This partnership further emphasizes Converge’s mission to deliver an all-in-one platform built for RWAs.
Interoperability and Cross-Chain Vision
Converge’s cross-chain vision extends beyond the Polygon ecosystem with support for assets originating from the Ethereum, Solana, and Arbitrum blockchain ecosystems. This increased interoperability will provide users the ability to seamlessly engage with their assets through multiple blockchain networks, creating increased liquidity potential and accessibility.
The inclusion of several different blockchain ecosystems is meant to expand the Converge ecosystem to attract a larger diverse group of attendees. It further inspires increased collaboration and innovation among the blockchain ecosystem.
Converge has aspirations to become a major hub for DeFi and RWA activity. Its goal accomplishes this by providing compatibility for assets from multiple blockchain ecosystems. By taking this approach, we will open the door for institutional finance players as well as decentralized finance players.
Future Implications and Rollout
The release of Converge is an exciting and important step toward the merging of traditional finance and DeFi. In particular, it serves as an infrastructure that enables the tokenization and adoption of real-world assets in a global, decentralized environment.
The mainnet is scheduled for deployment in Q2 of this year. This rollout will be a significant milestone not just for Ethena, but for the whole blockchain community. That developer-oriented testnet is expected to go live in the next few weeks. This will enable developers to begin building and testing applications on the new blockchain.
